What is strictest lowest value principle in SAP SRD-FIN-GL - FIN-General Ledger?

SAP Term: strictest lowest value principle

• Component: SRD-FIN-GL

• Component Name: FIN-General Ledger

• Description: A valuation method where the lower of two possible values must be used.

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• Key Concepts: 
  The Strictest Lowest Value Principle is a concept used in SAP General Ledger Accounting. It states that when multiple postings are made to the same account, the system will always use the lowest value of the postings. This means that if two postings are made to the same account, one with a debit value and one with a credit value, the system will always use the lowest value of the two postings. 
  
  How to Use it: 
  The Strictest Lowest Value Principle is used in SAP General Ledger Accounting when multiple postings are made to the same account. When this happens, the system will always use the lowest value of the postings. This means that if two postings are made to the same account, one with a debit value and one with a credit value, the system will always use the lowest value of the two postings. 
  
  Tips & Tricks: 
  When using the Strictest Lowest Value Principle in SAP General Ledger Accounting, it is important to remember that it only applies when multiple postings are made to the same account. If only one posting is made to an account, then this principle does not apply. Additionally, it is important to remember that when multiple postings are made to an account, the system will always use the lowest value of those postings. 
  
  Related Information: 
  The Strictest Lowest Value Principle is related to other concepts used in SAP General Ledger Accounting such as posting rules and posting keys. Posting rules determine how postings are handled in SAP General Ledger Accounting and posting keys determine which accounts are affected by a particular posting. Understanding these concepts can help you better understand how the Strictest Lowest Value Principle works in SAP General Ledger Accounting.